Leverage is a common financial trading system, namely the margin system. "Leverage" amplifies the amount that investors can trade while also increasing the profits investors can obtain and the risks they bear.

Taking cross margin as an example, when a user opens a long or short position of a certain quantity, Initial Margin = Position Value / Selected Leverage Multiple

Example:

USDT-margined Contract

Assuming the current BTC price is 100,000 USDT/BTC, and the user wants to use 10x leverage to open a long position equivalent to 1 BTC perpetual contract.

Initial Margin = Quantity * BTC Price / Leverage Multiple = 1 * 100,000 / 10 = 10,000 USDT